KARACHI: Pakistan on Friday approved a major reduction in import tariffs as part of its broader effort to revive the economy, boost exports and attract foreign investment, an official statement circulated by the Prime Minister’s office said.

The move comes as Pakistan emerges from a prolonged economic crisis and shifts from restrictive import controls, previously used to protect dwindling foreign currency reserves, toward policies aimed at sustaining growth and attracting investment. With inflation easing and macroeconomic indicators improving, the government is working on tariff reforms to boost industrial productivity.

Pakistani exports, especially in textiles, engineering and pharmaceuticals, rely heavily on imported inputs, making import duties a key factor in export competitiveness. The issue came up for decision during a high-level meeting on the National Tariff Policy, chaired by Prime Minister Shehbaz Sharif in Islamabad.

“In line with the government’s economic recovery plan, the prime minister has taken a historic step by approving a gradual but significant reduction in import tariffs,” the statement said, calling it “a key milestone” in achieving economic stability and enabling export-led growth.

Under the approved changes, Pakistan will phase out additional customs duties, currently ranging from two to seven percent, along with regulatory duties, between five and 90 percent, over the next four to five years.

The government will also cap general customs duties at 15 percent, compared to current rates that sometimes exceed 100 percent, and limit tariff slabs to four categories to reduce complexity and ensure a level playing field across industries.

The policy shift is expected to support the government’s goals of curbing unemployment, containing inflation further and providing dignified employment opportunities, particularly for educated youth.

Sharif also ordered the formation of an implementation committee to oversee the rollout of the tariff reforms and reiterated that economic revival remained his administration’s top priority.